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CSC333- Information Systems

Week-2 Lecture-4
Semester- 4 Spring 2018
Prepared by:

Muhammad Zulkifl Hasan

Senior Lecturer

MSc Comp NW (UK), BS TE (UMT)

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Overview of Previous Lecture

 In our last lecture we have discussed about:

 Organizational Structure Pyramid/Tall/Hierarchical
 Culture of the Organization
 Management Styles
 Decision Making Approach
 Sources of information in Organizations
 Direction of Information Flow

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Preamble

 In our todays lecture, we will be discussing about:

 Purpose of Systems & Procedures
 Manual Vs Computerized Information Systems
 What is Computer based Information System (CBIS)?
 Why Information Systems?
 Emerging Global Economies
 Transforming Industrial Economies
 Transformed Business Enterprise
 Emerging Digital Firms

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Systems vs. Procedures

 Procedure is a defined set of instructions aimed at describing how to proceed in achieving a

pre-defined milestone/target.
 Systems have collection of predefined procedures related to each other in a sequenced logical
manner in order to collectively achieve the desired results.
 The system & procedures in all kinds of environment are subject to internal controls and checks
that are necessary to ensure the effectiveness of the same.

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6.1 Purpose of Systems & Procedures

 The basic purpose behind setting up systems and procedures is to make available information
when required.
 But when procedures are organized in a logical manner to form systems, the value of
information as an output of a system enhances.
 When technology is added to the system, scope of a system changes to include hardware,
software and designs linked together in accordance with the procedures contained in that
system to give a purposeful architecture.

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6.2 Data & Information

 Before defining what information systems are? I would like to once again differentiate between
data and information. Data represents facts of any kind. Information is the processed form of
data being verified and substantiated from various sources.
 Example
 100,000 is a figure which by itself does not add to the knowledge But When we say 100,000
sales orders, it does add to our knowledge, hence is information.

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6.3 Data & Information

 Generation of relevant information is the objective of every information system. Now we would
move fwd with the definition & necessity of information systems.
 What are Information Systems?
 Interrelated components working together to collect, process, store and disseminate
information to support decision making, coordination control, analysis and visualization in an
organization.

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6.4 Manual Vs Computerized Information Systems

 As advancement was made in every field of life, manual information systems were converted
to computerized systems.
 In manual environment, the concept of transformation was difficult to apply, since input of data
into records was by itself the output which also included simple computations.
 Concept of control mechanism grew stronger as computerized information systems emerged.
Now the concept of Information system exists with the usage and benefits of Computers as an
inevitable part.

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6.5 What is Computer based Information System (CBIS)?

 CBIS is an Information System that uses computer & telecommunications technology to

perform its intended tasks. In CBIS, Information technology (IT) becomes a subset of the
Information system.
 The terms Information System (IS) and Computer Based Information System (CBIS) with
the extensive use of computers in almost every field renders it inevitable to think of an IS
as CBIS.

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6.6 Why Information Systems?

 In modern age, there has been felt a growing need for the use of information systems. Let’s
take a look at what factors increased the importance of efficient information systems.

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6.7 Emerging Global Economies

 High level of foreign trade has resulted in imports and exports which require inter linkage for
smooth coordination. Core business functions (manufacturing, finance and customer support)
have been distributed in different countries. Coordination

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6.8 Transforming Industrial Economies

 Industrial economies have started merging as knowledge-and-information-based economies.

Manufacturing activities being shifted to low wage countries. More opportunities are available
in education, health care, banks, insurance firms and law firms. More knowledge and
information intense products are being created.
 Higher commitment expected from customer e.g. overnight package delivery, world wide
reservation systems.

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6.9 Transformed Business Enterprise

 The structure of business enterprise have also changed, initially the organizations used to
be Hierarchical, Centralized, Structured following a Fixed Set of SOP’s.
 However, now the organizations are moving towards more Flatter, Decentralized and
Flexible structures.
 Information Technology makes it convenient and efficient to promote this new culture.

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6.10 Emerging Digital Firms

 Firms where all significant business process and relationships with customers and suppliers
and employees are digitally enabled and key corporate assets are managed through
digital firms.
 This results in rapid response with more flexibility to survive and getting more global.

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Chapter No.7 Types of Systems

 What are Systems?

 Components of a system
 Types of Systems
 Level of Planning
 Strategic Planning for Information Resources (SPIR)

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Types of Systems

 7.1 What are Systems?

 A system is a group of elements that are integrated with the common
purpose of achieving an objective.
 Example
 Purchase & Sales System

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7.2 Components of a system

 Following are the important components of the system.

 • Input elements
 Raw Data input to the computer system
 • Process
 Computation, analysis, application of any model
 • Output elements

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Contd.

 Results of computation or analysis

 • Control mechanism
 Comparison of actual with expected
 • Feedback system
 Corrective action
 • Objectives
 Expected/Ideal output

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7.3 Types of Systems

 7.3.1 Open-Loop System

 The determinant factor is in an open loop system is that the information from the system not
used for control purpose. This is done by using the output to generate feed back for control
purposes.
 • The output is not coupled to the input for measurement.
 • Hence the components of open loop system do not include control and feedback
mechanism due to
 non-existence of internally defined objectives. That is,
 o Input
 o Process
 o Output

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 Example
 An information system that automatically generates report on regular basis
and are not used to monitor
 input or activities.

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7.3.2 Closed Loop System

 • Is a system where part of the output is fed back to the system to initiate
control to change
 Either the activities of the system or input of the system
 • Has the ability to control the output due to existence of
 • Control Mechanism
 • Feedback System
 • Objectives

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 Example
 Budgetary control system in a company by which
 o The results are communicated through feedback system
 o Results are compared with the objectives/budget through controls
mechanism

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7.3.3 Open Systems

 • A system that is connected to its environment by means of resource flows is called

an open system.
 • The environment exerts influence on the system and the system also influences the
environment.
 Example
 • Business is a system where management decisions are influenced by or have an
influence on suppliers, customers, society as a whole.
 • Computerized system of a manufacturing entity, that takes influence from the
society.

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7.3.4 Closed Systems

 • A system that is not connected with its environment

 • Neither environment exerts any influence on the system nor does system influence the
environment.
 Examples
 • An information system designed to control data in a research laboratory is a closed
system.
 • An information system designed to record highly sensitive information is a closed system so
as
 • To accept no input for amendment
 • To give no output for disclosure

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 Objective of Having Systems

 • To subject a predefined amount of input (tangible, intangible) to predefined
set of instructions in order
 to achieve an expected quality and amount of output.
 • Effective and efficient utilization of resources

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7.4 Level of Planning

 There are three levels

 • Strategic
 • Tactical / Functional
 • Operational

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 Strategic Planning
 Is the formulation, evaluation and selection of strategies for the purpose of preparing a long-
term plan of action to attain objectives.
 Tactical/Functional Planning
 Is the process by which managers assure the resources are obtained and used effectively and
efficiently in the accomplishment of the organization’s objectives?
 Operational Planning
 It is the process of assuring that the specific tasks are being carried out efficiently and
effectively.

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Functional Strategic Planning

 Commitment by Firm’s executives requires strategic planning for the

following functional areas.
 o Manufacturing resources
 o Financial resources
 o Human resources
 o Marketing Resources
 o Information Resources

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7.5 Strategic Planning for Information Resources (SPIR)

 When a firm embraces SPIR the strategic plans for information services and the firm are
developed concurrently.
 Business strategy and IT related strategy should go hand in hand.
 The IT related strategy should be driven by business strategy and the former should
support the achievement what’s being mentioned in the latter. Any inconsistencies or
deviations between the two should be removed and avoided.
 The investment in IT is costly and inflexible. Such investment is also monitored and
controlled by the IT strategy. Hence any investment not supporting the business
strategy would be futile.

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 Example
 Business strategy
 Modify inventory system to fulfill orders quickly through relocating system to warehouse and efficient
 shelf picking.
 IS strategy
 To identify information resources needed for the successful implementation of business strategy.
 Information Value Chain
 Raw information is transformed at various points and value is added before passing onwards. Every step of
 processing should make the information stored more valuable.
 Example
 When customer order received, data punched into computerized system, which updates order list, customer
 records and store room records. When order has been served, customer orders are filed into records.

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Learning Outcomes

 In this lecture we have discussed following topics:

 Purpose of Systems & Procedures
 Manual Vs Computerized Information Systems
 Why Information Systems?
 Emerging Global Economies
 Transforming Industrial Economies
 Transformed Business Enterprise
 Emerging Digital Firms
 Level of Planning
 Strategic Planning for Information Resources (SPIR)

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Q&A

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References

 These lecture notes were taken from following source:

 1. Wikipedia entry on "Information Systems," as displayed on Jan 27, 2018. Wikipedia: The
Free Encyclopedia. San Francisco: Wikimedia
Foundation. http://en.wikipedia.org/wiki/Information_systems_(discipline)
 2. Excerpted from Information Systems Today - Managing in the Digital World, fourth
edition. Prentice-Hall, 2010
 3. Excerpted from Management Information Systems, twelfth edition, Prentice-Hall, 2012

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